Indian government on Wednesday approved disinvestment in three leading public sector enterprises - Coal India (CIL), Oil & Natural Gas Corporation (ONGC) and NHPC. The disinvestment would likely to add nearly Rs 458 billion to national exchequer.
The cabinet committee on economic affairs (CCEA), chaired by the Prime Minister Narendra Modi, today approved the disinvestment of 10 percent stake in CIL out of the government's shareholding of 89.65 percent. The stake sale in CIL would likely to fetch Rs 236.14 billion based on the current price. 'The decision to disinvest would help the government to realize an optimum price for the offer for sale of 10 percent of the government's shareholding in the company.'
CCEA has cleared 5 percent disinvestment in ONGC out of the government's shareholding of 68.94 percent. The stake sale in ONGC would likely to fetch Rs 190.50 billion based on the current price. 'This would further broad base the shareholding of the company and would enhance disinvestment receipts,' the government said.
In addition, an 11.36 percent disinvestment in NHPC was approved by CCEA out of the government's shareholding of 85.96 percent. The stake sale in NHPC would likely to fetch Rs 31.30 billion based on the current price. 'Increase in public shareholding would provide greater opportunity for the investing public to participate,' the government said.
The stake sale in all three PSUs will be conducted through an 'Offer for Sale' of shares on stock exchanges, as per SEBI Rules and Regulations.
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